LMAX Digital volumes jumped again on Wednesday, exceeding Tuesday levels. Total notional volume came in at $631 million, 43% above 30-day average volume.

Bitcoin volume printed $407 million, 45% above 30-day average volume. Ether volume came in at $124 million, 23% above 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $8,385 and average position size for ether at $3,550.

Market volatility is still well off March peak levels, to the tune of about 35%, though the lower volatility has been accompanied by ongoing demand which is encouraging.

We’re looking at average daily ranges in bitcoin and ether of $2,726 and $136 respectively.

We’re finally getting a little bit of a breakthrough in the crypto market after several days of lackluster trade.

As per our technical insights, bitcoin’s strong performance on Wednesday strengthens the possibility the low set the other week is the next higher low ahead of an upside extension to a fresh record high.

The fundamental catalyst for the move has come from the latest batch of US economic data which produced an investor friendly combination of slightly softer US CPI and downbeat US retail sales.

What this means is the market is now pricing two full rate cuts in 2024. This has driven yield differentials out of the US Dollar’s favor, which has been a benefit to bitcoin and crypto assets.

We think it’s also worth highlighting some important developments that encourage prospects for a more significant adoption of bitcoin and other crypto assets.

In recent days, we’ve learned MicroStrategy will be added to the MSCI world index, and major names like the Wisconsin pension fund, Rothschild, and Millennium have been taking on exposure to bitcoin by way of the bitcoin ETFs.